Marketing 101 teaches the principle of setting your business apart from the competition to be successful. In today’s competitive business landscape, this is not a simple task for any startup. Now more than ever, savvy consumers expect high-quality products, and equally high customer service experiences. A valuable tool to help you stay ahead of your competition is understanding customer insights.
Taking a closer look, customer insights can be defined as the understanding and interpretation of consumer data and behaviors to improve your product development and customer experience. These insights help you understand your customer better when it comes to product purchasing decisions. Business owners who have a deeper understanding of their customer behavior patterns outperform their competitors by 85% in sales growth, according to Microsoft.
As a creative entrepreneur, harnessing customer insights can help you grow your startup in the following ways:
To deliver personalized experiences- Customers who feel they are receiving personalized attention to their needs are most likely to become repeat customers and also a promoter of your business for generating new customers.
To predict future industry trends- identifying consumer pain points is key to keeping up with new trends in your industry and providing better service and/or products for your customers.
To create the most effective promotions- Understanding what products your customer is most likely to buy gives you the opportunity to streamline your targeting to your customers for successful promotions.
To create product pricing- Knowing what the industry’s going rates are for your product and/or services is important. It is equally important to know what your customer is willing to pay. The combination of these data points will help you determine the optimal product pricing.
To help streamline your markets- Having accurate data on customer sales will help you determine where to expand into new markets or which markets you should leave because of underperformance.
These are just a few benefits gained by using customer insights in your startup. When properly used, customer insight data can help you organize and make the improvements necessary for building a thriving business.
